ISS Recommends Shareholders Vote the GOLD Proxy Card “FOR” Saba Capital’s Nominees at Four Major BlackRock Closed-End Funds
A Leading Independent Proxy Advisory Firm Has Now Endorsed Boardroom Change at the
ISS Concludes There are “Serious Concerns with Corporate Governance That Demonstrate a Need for Immediate Intervention” at the BlackRock Funds
Visit HeyBlackRock.com to Learn How to Vote “FOR” Each of Saba’s Nominees on the GOLD Proxy Card Ahead of the Upcoming Annual Meetings
-
BIGZ shareholders should vote FORSabanominees:
Ilya Gurevich ,Shavar Jeffries , David Locala andAthanassios Diplas . -
ECAT shareholders should vote FORSabanominees:
Ilya Gurevich andAthanassios Diplas .
Earlier this week, ISS concluded that “direct intervention at the board level is necessary” based on the Funds’ unacceptable performance and anti-shareholder governance:
-
BSTZ shareholders should vote FOR all of Saba’snominees: David Locala,
Athanassios Diplas andAlexander Vindman . -
BFZ shareholders should vote FOR all of Saba’snominees:
Shavar Jeffries andIlya Gurevich . -
MHN and MYN shareholders should withhold support for BlackRock director
J. Phillip Holloman .
“We are grateful to have received support from a leading proxy advisory firm against worst-of-all-worlds governance at BlackRock funds, which have destroyed value for millions of investors. We view this outcome as an unmitigated win on the points that matter most to shareholders. Notably, ISS has concluded that urgent boardroom intervention is necessary and endorsed Saba’s nominees for the second year in a row at BIGZ and ECAT – which are Saba’s largest holdings across the BlackRock funds.
Despite marketing itself as a leader in governance, BlackRock has made a mockery of sound standards across its closed-end funds. For years BlackRock and its trustees have operated unchecked as they crushed the rights of shareholders to entrench themselves – all while shareholders have suffered immense financial losses.
At the upcoming Annual Meetings, investors will have an opportunity to elect independent trustees focused on improving the Funds’ governance and creating shareholder value. Voting for each of Saba’s nominees on the GOLD Proxy Card at each of the 10 Funds is the only way to ensure shareholders' input will finally be respected. Saba’s nominees intend to meaningfully improve the way the Funds are governed to deliver value for the benefit of all investors, including the millions of American retirees invested in these Funds.”
In its report on BIGZ, ISS concluded the Fund’s anti-shareholder governance has worsened under the current Board:2
- “The fund has severely underperformed from both a TSR and NAV perspective, a situation that is unchanged from last year's contest. The fund's governance, which last year possessed many shareholder-unfriendly features, has tangibly worsened.”
- “That the board appears more focused on the legality of its corporate governance regime than its advisability from a shareholder rights perspective should be concerning to the fund's shareholders.”
- “The board has made no strides forward since last year's contest—its board is still classified, shareholders still cannot amend the bylaws, and a worst-of-all worlds director election standard will be used in this year's contest, as was the case in last year's contest.”
-
“Support for dissident nominees
Athanassios Diplas ,Ilya Gurevich ,Shavar Jeffries , and David Locala, who collectively bring much-needed outside independence, along with risk management and investment experience, is warranted on the dissident (GOLD) card.”
In its report on ECAT, ISS concluded the Fund’s Board has taken extreme measures to disenfranchise shareholders:3
- “It is challenging to overlook just how hard the board is fighting to preserve its ability to disenfranchise the dissident and other shareholders. There is no acceptable justification for its actions from a corporate governance standpoint.”
- “The corporate governance structure at ECAT includes numerous policies and practices that do not align with the best interests of shareholders.”
- “The board is deeply entrenched, and is making decisions that do not align with or support the best interests of shareholders. A direct intervention remains necessary.”
-
“Dissident nominees
Ilya Gurevich andAthanassios Diplas would represent a much-needed infusion of outside independence, enhancing oversight while ensuring that more attention is paid to the best interests of shareholders on important matters relating to corporate governance. At the same time, they have investment and risk management experience that could be additive. As such, support for Gurevich and Diplas is warranted on the dissident (GOLD) card.”
In its earlier reports on BSTZ and BFZ, ISS supported ALL of Saba’s nominees:
- “There are not only concerns with numerous elements of quantitative performance, but [BSTZ’s] board has enacted a corporate governance structure designed to disenfranchise shareholders.”
- “…it is challenging to overlook the fact that [BSTZ’s] TSR remains over 65 percentage points worse than the peer median since inception, while the NAV discount remains significantly wider.”
- “…there are concerns with distribution quality, as all of [BSTZ’s] distributions in the most recent fiscal year were sourced from a return of capital.”
- “In light of [BFZ’s] demonstrated comfort with disenfranchising a shareholder, a direct intervention at the board level is necessary.”
***
VOTE “FOR” BOTH OF SABA’S PROPOSALS ON THE GOLD PROXY CARD:
- The election of Saba’s highly qualified and independent nominees.
- The termination of BlackRock’s investment management agreement with BFZ, BCAT, ECAT, BMEZ, BIGZ and BSTZ.
For information on how to vote for Saba’s proposals on the GOLD Proxy Card, to download a copy of the investor presentation and to sign up for important campaign updates, visit www.HeyBlackRock.com.
***
About
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The information herein contains “forward-looking statements.” Specific forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include, without limitation, words such as “may,” “will,” “expects,” “intends,” “believes,” “anticipates,” “plans,” “estimates,” “projects,” “potential,” “targets,” “forecasts,” “seeks,” “could,” “should” or the negative of such terms or other variations on such terms or comparable terminology. Similarly, statements that describe our objectives, plans or goals are forward-looking. Forward-looking statements relate to future events or future performance and involve known and unknown risks, uncertainties, and other factors that may cause actual results, levels of activity, performance or achievements or those of the industry to be materially different from those expressed or implied by any forward-looking statements. Each of the BlackRock Funds (as defined below) has also identified additional risks relating to its business in its public filings with the
Certain statements and information included herein have been sourced from third parties.
CERTAIN INFORMATION CONCERNING THE PARTICIPANTS
The “Nominees” refer to (i) with respect to BIGZ, ECAT and MPA,
________________________
1 The Funds include: the
2 Permission to quote ISS was neither sought nor obtained.
3 Permission to quote ISS was neither sought nor obtained.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240613691354/en/
ckiaie@longacresquare.com / ksylvester@longacresquare.com
Source: